Delta Restoration Services®
|Delta Restoration Services®||AdvantaClean|
|Number of locations (US)||8||223|
|Startup Costs||$162,755 - $332,220||$124,800 - $226,223|
|Initial Franchise Fee||$45,000||$39,000|
|Supplies, Equipment and Inventory||Purchase: $27,600 - $42,500||Lease: $3,000 - $4,000|
|Vehicle||Lease: $400 - $700 / month||Purchase: $2,000 - $10,000|
|Additional Funds (Working Capital)||$52,755 - $65,000||$15,000 - $30,000|
|Additional Funds (Working Capital)||$52,755 - $65,000||$30,000 - $35,000|
|Unlike Delta, AdvantaClean provides no reconstruction possibility and only limited territories are available.|
AdvantaClean Systems, Inc. performs environmental services in residential and commercial properties including services and products related to the cleaning and maintenance of air ducts, dryer vents, and ventilation systems; mold remediation, microbial sampling, testing, and indoor air quality assessments; and the performance of 24-hour emergency mitigation, cleaning, and restoration services for residential and commercial properties damaged by water and other approved property damage events.
According to AdvantaClean Systems, Inc. Franchise Disclosure Document, the franchisee will operate an AdvantaClean Environmental unit franchise that performs environmental services in residential and commercial properties including services and products related to the cleaning and maintenance of air ducts, dryer vents, and ventilation systems; mold remediation, microbial sampling, testing, and indoor air quality assessments; and the performance of 24-hour emergency mitigation, cleaning, and restoration services for residential and commercial properties damaged by water and other approved property damage events; and other approved services. The total investment necessary to begin operation of an AdvantaClean Environmental franchise is $73,600 — $104,300. This includes the $39,500 Initial Franchise Fee that must be paid to the franchisor.
Join the profitable, recession-resistant insurance restoration industry with delta Restoration Services®
Delta customers get comprehensive reconstruction services to restore the structure to pre-loss condition from a single trusted vendor.
Delta Development Group grants franchises for the operation of commercial and residential property mitigation, reconstruction, remodeling and consulting businesses using the name “DeltaRestoration Services®”. Since August 2016, we have also operated one Delta Services Business. We are not engaged in any other type of business activity.
As a Delta Restoration Services® franchisee you get access to proprietary scalable processes to meet second year gross minimum of $850,000 and 3rd year with gross minimum objectives of $1 million, while servicing both commercial and residential customers with water, fire, and environmental losses.
Exclusive franchise territories are based on a minimum of 280,000 people up to 1 million. They're ideally located near or in a major metropolitan area servicing residential neighborhoods, commercial housing, and hospitality properties.
For construction services, reconstruction services, and asbestos abatement-related services, the greater of 4% of Gross Revenue or the Minimum Royalty.
For mitigation services, which includes contents-related work and structural cleaning, the greater of 8% of Gross Revenue or the Minimum Royalty.
|Technology Support Fee|
$299, payable monthly by electronic funds transfer.
The purpose of the technology support fee (“Technology Support Fee”) is to defray the cost of providmg technology support to you.
|Warranty Fund Contribution|
1% of Gross Revenue, Payable monthly by electronic funds transfer.
Your warranty fund contnbution (“Warranty Fund Contribution”) will be contributed to the warranty fund (“Warranty Fund”) established to fund the service warranties provided to customers. The total Warranty Fund Contribution will be capped at the amount set forth in the Operations Manual. We have the right to adjust the cap upon thirty days wntten notice to you. Your obligation to pay us the Warranty Fund Contribution will commence two years after you begin operations.
|Individual Advertising Expense|
2% of Gross Revenue, payable monthly.
Your obligation to make the individual advertising expense (“Individual Advertising Expense”) for advertising and promotion will commence 90 days after you begin operations Prior to the time the Individual Advertising Expense obligation commences, you must spend a total of $6,000 on advertising and promotion in your Area of Primary Responsibility for the first 90 days after you commence operations (See ITEM 7) Salaries for your marketing support personnel are separate expenses that must not be included m the Individual Advertising Expense or the amount you must spend on advertising and promotion for the first 90 days after you commence operations.
|National Marketing Fee|
1% of Gross Revenue, Payable monthly by electronic funds transfer.
You must pay us a national marketing fee (“National Marketing Fee”) in addition to the Individual Advertismg Expense and Start-Up Advertising The National Marketing Fee will be deposited into a national marketing fund (“National Marketing Fund”) Advertising materials and services will be provided to you through the National Marketing Fund The Franchise Agreement authorizes us to increase the amount ofthe National Marketing Fee to a maximum of 3% of Gross Revenue for the previous month. If we increase the National Marketing Fee, your Individual Advertising Expense will be reduced by the same amount Your obligation to pay us the National Marketing Fee will commence two years after you begin operations.
|Successor Franchise Fee|
10% ofthe then-current Initial Franchise Fee, payable at the time you sign the Successor Franchise Agreement.
Xactimate software SI 13 to $160 per month per license.
In order to secure favorable pricing for our franchisees, we have entered into a software license agreement with the licensor ofthe estimating software which we require you to use in connection with your Delta Services Business. This fee could decrease as your number of software licenses increases and depending on the type oflicense you obtain Because this fee is a pass-through cost, we are not deriving any revenue from this fee While we will handle the administration of licenses to our franchisees, you must work directly with the software licensor regardmg any technical issues you encounter.
|Software License Fees|
Quickbooks Premier Contractor $450-$1,100 for three licensed users, proprietary Delta Management software $200 per month per location or license obtained.
You must comply with all terms and pay all fees that may be due under a software license agreement for any software you are required to use in the operation of your Delta Services Business. The fees to use each software program will vary based on the number of licensed users per location.
$500-$1,500 per computer workstation
We impose no cap or limitation on the amount of expense you may incur for hardware and software upgrades.
You must pay a Royalty Fee of 10% of Gross revenues for all Direct Services, and a Royalty Fee of 2% for all Indirect Services, if any, as defined by Advanta Clean in the Operations Portal. There is a &1,000 monthly minimum Royalty Fee.
Royalties must be paid monthly, in approved electronic format, by the tenth day of the following month, beginning the tenth month of the fourth month after the completion of Initial Training at our Headquarters or the tenth day of the seventh month after you sign your franchise agreement, whichever is sooner.
Gross Revenues mean the amount of all receipta and/or deposits for the sale of any products or services at the Franchised Business and income of every other kind and nature related to the Franchised Business, whether for products and services, cash, exchange, or credit, regardless of collection in a case of cresit, less any refunds; provided, however, that Gross Revenues shall not include any sales taxes collected for remittance by tou or any infusions of capital by shareholders.
|Additional e-CCM User Fee|
$150 per month, per additional e-CCM user / By the 1st day of each month in advance of usage.
The e-CCM System is a proprietary integrated business management system, which includes customized software, which facilitates the flow of business related information between you, us, and your customers. The e-CCM System will be operated by either us, by a third party company selected by us, or a combination of both. We provide you with one (1) e-CCM user license at the outset of your business, in connection with your $1,000 minimum monthly Royalty, which we will continue to supply as long as you are in good financial standing with us. For each additional e-CCM User, you must pay to us a monthly User Fee of $150 per month.
$100 per incident plus 1.5% interest per month, or maximum allowed by law / When payment is past due. If you fail to pay your Royalty or any Fees, or any other monies owed to us, then you are subject to a late fee of $100 per incident plus l'A% interest per month of the unpaid balance, or the maximum permitted by law, whichever is higher.
|10% of then-current Initial Franchise Fee / Upon signing new franchise agreement. When you renew your AdvantaClean franchise agreement, we charge a renewal fee of 10% of the then-current Initial Franchise Fee. There are other conditions for renewal. See Item 17 in this disclosure document for details.|
|50% of then-current Initial franchise Fee plus any broker fees. (If a third party broker locates the transferee, there will be a broker fee) / Before transfer is effective.
We will charge a transfer fee of SO% of the then-current Initial Franchise Fee charged by us in the then-current franchise agreement. If a third party broker locates the transferee, there will also be a broker fee. There are other conditions for transfer. See Item 17 in this disclosure document.
|$250 fee for various modifications to certain legal documents / Upon receipt of bill.
We will charge you an Administrative Fee of $250 for processing modifications which we make to your franchise agreement at your request, or are required by us due to your actions, or for our consent to other transactions that you request.
|National Advertising Fund|
|Up to 2% of monthly Gross Revenues / when implemented.
Even though the National Advertising Fund is not operational as of the date of this disclosure document, we can activate it by giving you 30 days prior written notice of its implementation. After we have activated this fund, you will be required to pay to us electronically, up to 2% of Gross Revenues per month. The monies that you pay into the National Advertising Fund are monies of all the Franchises and will be kept in a separate account and a yearly accounting will be performed on this account by an independent accounting firm. This fund will be used exclusively for certain costs of purchasing, maintaining, administering, directing, and preparing marketing and advertising activities including public relations or activities related to maintaining an internet presence. An unaudited, annual accounting of amounts received under Section X of the franchise agreement, if any, shall be prepared by the franchisor within one hundred twenty (120) days of the end of each calendar year and provided to the franchisee upon request.
|$2,500 / Upon receipt of bill / By the 15th day of the following month.
You must pay for, at an established program rate, enrollment in the required Foundations sales training program provided at a Sandler Training facility designated by us. Upon satisfactory completion of the Foundations program, including attendance of all classes, we will refund 100% of your enrollment fees. We will provide this refund for one enrollee. If a Sandler Training facility is not available, we may elect to designate and require an alternative approved sales training program.